CAIFX vs. VADGX

Last updated Jun 4, 2026

CAIFX (American Funds Capital Income Builder Fund Class F-2) and VADGX (Vanguard Advice Select Dividend Growth Fund) are both mutual funds - CAIFX is a Dividend fund actively managed by American Funds, while VADGX is a Large Cap Blend Equities fund managed by Vanguard. Over the past 3 years, CAIFX returned 15.46%/yr vs 9.57%/yr for VADGX. Their correlation of 0.81 suggests significant overlap in exposure. CAIFX charges 0.37%/yr vs 0.45%/yr for VADGX.

Performance

CAIFX vs. VADGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Capital Income Builder Fund Class F-2 (CAIFX) and Vanguard Advice Select Dividend Growth Fund (VADGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CAIFX achieves a 7.86% return, which is significantly higher than VADGX's 1.28% return.

CAIFX

• 1D: 0.57%
• 1M: 2.03%
• YTD: 7.86%
• 6M: 8.66%
• 1Y: 18.75%
• 3Y*: 15.46%
• 5Y*: 8.77%
• 10Y*: 8.17%

VADGX

• 1D: 0.09%
• 1M: 3.76%
• YTD: 1.28%
• 6M: 1.32%
• 1Y: 6.94%
• 3Y*: 9.57%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

CAIFX vs. VADGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
CAIFX American Funds Capital Income Builder Fund Class F-2	7.86%	20.63%	10.47%	9.21%	-6.95%	2.03%
VADGX Vanguard Advice Select Dividend Growth Fund	1.28%	8.52%	10.69%	10.42%	-3.88%	3.62%

Correlation

The correlation between CAIFX and VADGX is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (All Time) Calculated using the full available price history since Nov 10, 2021	0.81

The correlation between CAIFX and VADGX has been stable across timeframes, ranging from 0.75 to 0.81 - a consistent structural relationship.

Return for Risk

CAIFX vs. VADGX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CAIFX

CAIFX Risk / Return Rank: 62
CAIFX Sharpe Ratio Rank: 65
CAIFX Sortino Ratio Rank: 64
CAIFX Omega Ratio Rank: 64
CAIFX Calmar Ratio Rank: 58
CAIFX Martin Ratio Rank: 58

VADGX

VADGX Risk / Return Rank: 8
VADGX Sharpe Ratio Rank: 9
VADGX Sortino Ratio Rank: 9
VADGX Omega Ratio Rank: 8
VADGX Calmar Ratio Rank: 7
VADGX Martin Ratio Rank: 8

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CAIFX vs. VADGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Capital Income Builder Fund Class F-2 (CAIFX) and Vanguard Advice Select Dividend Growth Fund (VADGX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	CAIFX	VADGX	Difference
Sharpe ratio: Return per unit of total volatility	2.37	0.72	+1.65
Sortino ratio: Return per unit of downside risk	3.35	1.11	+2.24
Omega ratio: Gain probability vs. loss probability	1.45	1.13	+0.32
Calmar ratio: Return relative to maximum drawdown	2.92	0.67	+2.26
Martin ratio: Return relative to average drawdown	11.65	2.40	+9.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CAIFX vs. VADGX - Sharpe Ratio Comparison

The current CAIFX Sharpe Ratio is 2.37, which is higher than the VADGX Sharpe Ratio of 0.72. The chart below compares the historical Sharpe Ratios of CAIFX and VADGX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CAIFX	VADGX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.37	0.72	+1.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.88	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.55	0.49	+0.06

Drawdowns

CAIFX vs. VADGX - Drawdown Comparison

The maximum CAIFX drawdown since its inception was -36.83%, which is greater than VADGX's maximum drawdown of -15.75%. Use the drawdown chart below to compare losses from any high point for CAIFX and VADGX.

Drawdown Indicators

	CAIFX	VADGX	Difference
Max Drawdown Largest peak-to-trough decline	-36.83%	-15.75%	-21.08%
Max Drawdown (1Y) Largest decline over 1 year	-6.47%	-11.07%	+4.60%
Max Drawdown (3Y) Largest decline over 3 years	-8.88%	-14.73%	+5.85%
Max Drawdown (5Y) Largest decline over 5 years	-17.51%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-25.27%	—	—
Current Drawdown Current decline from peak	0.00%	-0.91%	+0.91%
Average Drawdown Average peak-to-trough decline	-4.71%	-3.48%	-1.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.62%	3.06%	-1.44%

Volatility

CAIFX vs. VADGX - Volatility Comparison

American Funds Capital Income Builder Fund Class F-2 (CAIFX) has a higher volatility of 2.47% compared to Vanguard Advice Select Dividend Growth Fund (VADGX) at 2.32%. This indicates that CAIFX's price experiences larger fluctuations and is considered to be riskier than VADGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CAIFX	VADGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.47%	2.32%	+0.15%
Volatility (6M) Calculated over the trailing 6-month period	6.41%	7.80%	-1.39%
Volatility (1Y) Calculated over the trailing 1-year period	7.99%	10.16%	-2.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.98%	13.63%	-3.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.88%	13.63%	-2.75%

CAIFX vs. VADGX - Expense Ratio Comparison

CAIFX has a 0.37% expense ratio, which is lower than VADGX's 0.45% expense ratio.

Dividends

CAIFX vs. VADGX - Dividend Comparison

CAIFX's dividend yield for the trailing twelve months is around 7.42%, more than VADGX's 1.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CAIFX American Funds Capital Income Builder Fund Class F-2	7.42%	7.93%	5.98%	3.69%	3.66%	3.36%	3.60%	4.31%	3.76%	4.63%	3.73%	3.82%
VADGX Vanguard Advice Select Dividend Growth Fund	1.02%	1.04%	1.98%	1.25%	0.84%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CAIFX and VADGX in my portfolio?

CAIFX and VADGX have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CAIFX or VADGX?

CAIFX has higher volatility (2.47%) compared to VADGX (2.32%). In terms of maximum drawdown, CAIFX dropped -36.83% vs VADGX's -15.75%.

Which has better risk-adjusted returns?

CAIFX currently has the higher Sharpe Ratio (2.37 vs 0.72), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.